Even after clearing the 1.3215-20 resistance-region, USDCAD needs to conquer the 1.3260-65 horizontal-area in order to extend its recovery towards the 1.3300 and the 1.3340 resistances. Though, pair’s ability to surpass the 1.3340 can escalate its north-run in direction to the June high of 1.3385 and then to the 61.8% FE level of 1.3460. In case the quote fails to cross the 1.3265 immediate barrier, it can revisit the 1.3220-15 zone, breaking which 1.3160 and an upward slanting TL, at 1.3125, may confine the pair’s following declines. It should also be noted that the pair’s additional downturn beneath the 1.3125 can drag it to the 1.3060, the 1.3030 and to the 1.3000 psychological magnet.
While USDCAD has another resistance to break after clearing an intermediate hurdle, the GBPCAD’s recent break of ascending trend-line can’t be termed as a sign of its plunge unless closing below the 1.7160 TL-mark on a daily basis. If the pair closes below 1.7160, the 1.7050 and the 1.7000 are likely supports that it could avail before testing the 1.6860 and the 1.6750 rest-points. On the upside, a D1 close beyond 1.7320 can trigger the pair’s recovery to the 1.7400, the 1.7460 and the 1.7550 resistances. However, pair’s break of 1.7550 may find it hard to confront the four-month old descending TL, at 1.7600, adjacent to the 100-day SMA level of 1.7635.
NZDCAD seems preparing itself to reach the 50-day SMA level of 0.8995 for one more time with 0.8965 acting as a halt during its rise. Should the pair rallies above 0.8995, the 0.9030 and the 0.9100 can please the buyers prior to challenging them with 100-day SMA level of 0.9130. Alternatively, the 0.8925 and the 0.8875 may entertain short-term sellers but the 0.8840 level, comprising seven-month long ascending TL, could limit the pair’s further weakness. Given the Bears’ refrain to respect the 0.8840 support, the 0.8800 and the 0.8780 might appear in their radar to target.
Following its break of four-week old ascending trend-line, the CADCHF is expected to re-test the 0.7530 horizontal-line, which if can’t stop the pair’s drop can register the 0.7500 and the 0.7470 numbers on the chart. Moreover, pair’s extended downside below 0.7470 could have 0.7425 as a buffer ahead of highlighting the 0.7390 for traders. Meanwhile, 0.7580 and the 0.7600 can provide near-term cap to the prices before the 0.7620 resistance-line. In case the pair crosses 0.7620 line, the 0.7665 and the 0.7700 might become Bulls’ favorites.
This article was originally posted on FX Empire
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